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HomeMy WebLinkAbout1998-06-08 98-236 ORDERCOUNC ACTION Date: lune 8, 1998 ItemNo.98�— Item/Subjwt:Annual Fuel Contracts Responsible DepathnenT PuxhesinglFuwomce Conwrentary: Again this year the City requested a fixed prim option for No.2 Fuel Oil in which the price would rennin firm for the entire year. We received three bids that guarantee a fixed price for the mare year. Irving Oil Corporation was the low bidder for No.2 fuel oil, gasoline, diesel and kerosene. The fixedpriceforthe yearwasbasedon fuel oil tutures prices at the Meresndle Exchange for (October 1998 through March 1999 contracts). The price is established by averaging the cost oftwentyrone (21) Ocmbx-March futures multrach, plus a fixed amouatof$0.0952/gal. The final fixed pace ferthe year will be established on June 9,1998 (the price on May 28, 1998 was $0.5715/gahJ. Sprague Energy was the competitive bidder at $0.5426/gal. for No. 5 and $0.4915/0. for No. 6 fuel oil. This bid request was consolidated with the City of Brewer. The award of the contracts to Irving OJ Corporation and Sprague Energy Corporation were reviewed by the Finance Corundum on lune 1, 1998 and referred to the City Council with arecommerulation for approval. Dep H Managers Comments: City Manager Associated Information: Award Recornmmdation and Bid Tabulation Budget Approval: Various Funds and Accounts Finance Director Legal Approval: p2 /My� e o-( <rl0 . u City Solicitorju Introduced For. X Passage_ First Reading _Referral M Aea;gned to coundar Tyiar lune e, 1998 CITY OF BANGOR (TITLE.) (Orbtrr A ffionzing AwardofAmtual Frelconkaca,. By to City Coaeot{ of City OfBawor: ORDERED. yip Awards= autMrizedtome following companies for the fuels as noted belowT All awards are made on the basis of the low responsive bid received for the add-on for each product, except the No.2 fuel oil trwardthat was based only on fixed price for the year. I. No.2 Furl Oil: accept fixed price option la from Irving Oil $0.5715' gal. 2. No. 2 Fuel Oil, General Assistance: Irving oil at $0.5715' gal. 3. No. 1 Diesel: Irving ail at $0.5083 gal. 4. No. 2 Diesel: Irving ail at $0.4852 gal. 5. Kerosene: Irving oil at $0.5575 gal. 6. Kerosene, General Assistance: Irving oil at 50.5600 gal. 7. Gasoline 87 Octane: Irving oil at $0.5376 gal. S. Gasoline 89 Octane: Irving oil at $0.5730 gal. 9. No.5 Fuel Oil: Sprague Fact" at $0,5426 gal. 10. No. 6 Fact Oil: Sprague Energy at $0,4915 gal. 'The final fixed price for the year will be established by the average of 21 contracts on the New York Mercantile Exchange for October 1998 through March 1999. IH cin Cmmcn June 8, 1998 Passed dL CI CLARK 98-236 ORDER Titley Authorizing Award of Annual Fuel Contracts ......................a............... ...................................... a. Aalgud to TCouncilman 98-236 CITY OF BANGOR - AWARD RECOMMENDATION �4rn BIB fTEM(S): Fuel Oil DEPARTMENT: Citywide BUDGET REFERENCE: Requisition No.: Annual Contract Account Number: Various Accounts Budgeted Amount: $ Various Available Saba": $ Various BudeNs Total Amount of Award Recommended: $ ula Vandor Recommended: hviva Oil Comorationand Somgue Energy Com. Number of Bids Beat: l6 Number of Bide Received: 4 Date Advertised: Mav15.1998 Bid Opening Date: May 27.1998 Past Experience with Vendor: X Execlent—Good _ Fav_ Poor_No priorexperience Has experience, references checked or other method ofvendar reliabilityestablid ed OTHER COMMENTS: Award all fuel contracts except No.5 and No.6 fuel oil to Irving Oil Corp., of Bangor, the low bidder. Award the No.5 and No.6 fuel oil contracts to Sprague Energy of Beazaport, the low bidder for these products. It is also recommended thatthe City accept fixed price option La (pay aftereach delivery)far No.2finloil. ThefinaiftWpd"forfte wi116ebasedontheavengefiN prices October- h4sach on the MERC Exchange on the day of formal acceptance by the City (furor 9,1998). No.2 Fact Oil, including General Assistance: (fixed price) $0.5715 ($0.6540) No. l Diesel: $0.5083 ($0.5221) No. 2 Diesel: $0.4852 Rarosme: $0.5575 ($0.5370) Ensnares, General Assistance: $0.5600 ($0.5520) Gasoline, 87 Geneva: $0.5376 ($0.5410) Gasoline, 89 Octane: $0.5730 ($0.5783) _ No. S Fuel Oil: $0.5426 ($0.5783) 1 \I L,Y//. No.Fuel Oil: $0.4915 ($0.4152) \ i 1A. CITY COUNCIL FINANC COMbDTTEE: ,� p� tun. (3r/-vtiC cl. i yon, June 1, 1997 CRY OF BANGOR Pepe2$2 BIO TABULATNIN BM Opening: M" V. IM LNNML FUEL CONTRACTS �7������ � �Mmmom